Chapter I of the Elementary and Secondary Education Act (ESEA) is the largest federally-funded program designed to provide services to elementary and secondary students to meet the special needs of educationally deprived students who reside in areas with high concentrations of low-income families. The 1994-95 school year is the last year of operation under Chapter I of the ESEA. The 1994 reauthorization of the legislation changed the name to Title I of the Improving America's Schools Act. The reauthorized program will promote: (1) high standards for all children; (2) a focus on teaching and learning; (3) flexibility for local initiative and responsibility for student performance; (4) links among schools, parents, and communities; and (5) resources targeted to greatest areas of need. In fiscal year 1995, 46,772 students received Chapter 1 services in Colorado. Fifty-five percent of the state's Chapter 1 participants belonged to an ethnic minority, while 73.5% of the state's students overall were white. Achievement gains in reading were reported by all Colorado Chapter 1 districts in 1994-95, and language arts and mathematics programs were also effective in improving participants' achievement. However, Chapter 1 schools with the highest concentrations of poverty had lower average normal curve equivalent gains in basic and advanced skills. Two examples are given of successful Chapter 1 programs in Colorado. (Contains 5 tables and 14 figures.) (SLD)